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Wednesday, September 11

Some of the largest macro moves in the market today include: US 2Y Treasury Bond -0.2%. Oil (WTI) +1.4%. Ethereum -2.7%. Some of the largest moves among US mega-cap stocks include: UnitedHealth Group Inc (UNH) -1.9%. 

The annual core consumer price inflation rate in the United States remained steady at 3.2% for August, matching July's reading and aligning with market forecasts. This stability comes despite a slight monthly increase of 0.3%, which was above expectations, driven by rising costs in shelter and motor vehicle insurance among other sectors.

In Europe, UK industrial production unexpectedly fell by 0.8% month-over-month in July against predictions of growth, primarily due to declines across manufacturing and utilities sectors while mining output saw some recovery after previous contractions.

Global markets are also reacting to political developments including recent debates between US presidential candidates Donald Trump and Kamala Harris as well as anticipation surrounding upcoming central bank meetings where significant policy decisions on interest rates are expected from both the Federal Reserve later this month and the European Central Bank tomorrow.

SPDR Dow Jones Industrial Average ETF Trust (DIA) [-0.5%]
The SPDR Dow Jones Industrial Average ETF Trust (DIA) has seen a price drop of 0.5% in the pre-market session on Wednesday. Key contributors to this decline include significant losses from holdings such as UnitedHealth Group, Home Depot, Salesforce, American Express, and Goldman Sachs. Notably, Goldman Sachs has appointed new co-heads of mergers and acquisitions in Asia Pacific, signaling strategic shifts within the firm. Major indexes have also declined, influenced by August Consumer Price Index figures that met expectations, reflecting persistent inflationary pressures. Recent macroeconomic data showed the U.S. Core Inflation Rate rising above forecasts, while the annual Inflation Rate registered slightly below expectations. The S&P 500 Index has similarly decreased by 0.20%, suggesting a broader market sentiment that may be affecting DIA's performance.

United States Oil Fund LP (USO) [+1.9%]
The United States Oil Fund LP (USO) experienced a price increase of 0.8% in pre-market trading on Wednesday. This movement coincides with a reported decline in U.S. crude inventories by 2.79 million barrels, as per the American Petroleum Institute. Gasoline stocks also decreased by 513,000 barrels. The drop in inventories has contributed to a rebound in crude oil prices, with West Texas Intermediate crude rising by 2.5% to $67.40, amid concerns regarding Hurricane Francine potentially disrupting offshore production in the Gulf of Mexico. This recent volatility follows a period where Brent crude futures approached three-year lows, highlighting the sensitivity of oil prices to supply disruptions. Despite these developments, USO did not react significantly to the inventory data release, which typically influences oil prices more dramatically.

GME |-10.4%|-670.6M
GameStop Corp | Computer & Electronics Retail
GameStop Corp's shares have dropped significantly. The company reported Q2 2024 results revealing net sales of $798.3 million, a substantial decrease from the previous year and below consensus expectations. While adjusted earnings per share (EPS) were reported at $0.04, surpassing estimates of a loss, sales across key segments experienced sharp declines: hardware and accessories fell by 24%, while software sales plummeted by 48%. Notably, GameStop will not hold a conference call to discuss these results, which may have further contributed to market apprehension. Additionally, despite holding $4.2 billion in cash with no debt, concerns remain regarding the sustainability of its core operations amid these challenges.

MSTR |-3.3%|-73.8M
Microstrategy Inc | Application Software
Microstrategy Inc (MSTR) has seen a price decline of 3.2% since Tuesday, coinciding with a 1.49% drop in Bitcoin, which often influences MSTR's performance due to their strong correlation. Peter Schiff has publicly challenged Michael Saylor's assertions regarding Bitcoin's scarcity, highlighting that a lack of new buyers could precipitate a price crash if current holders sell. Schiff emphasized the necessity of robust demand for Bitcoin's value retention, contrasting it with gold's perpetual demand. Meanwhile, Saylor claims that Microstrategy's Bitcoin investments have yielded significant annual returns since August 2020. Social media discussions over the past 14 hours suggest speculation surrounding a potential $2 billion Bitcoin purchase by Microstrategy, alongside positive sentiment regarding Bitcoin's stability during ongoing debates. At the time of reporting, Bitcoin was priced at $56,726.91.

PLAY |+13.9% | +190.1M
Dave & Buster's Entertainment Inc | Leisure Facilities
Dave & Buster's Entertainment Inc reported second-quarter adjusted earnings per share of $1.12, exceeding the consensus estimate of $0.84 by 33.33%. Revenue for the quarter was $557.1 million, slightly below the expected $560.6 million but representing a year-over-year increase of 2.8%. Comparable store sales decreased by 6.3%. The company noted progress on strategic initiatives, including remodeled locations and enhanced menu offerings, which have positively impacted guest satisfaction and food and beverage performance. Adjusted EBITDA rose 8.1% year-over-year to $151.6 million, reflecting effective cost management and operational improvements. Following the earnings report, shares of Dave & Buster's experienced a notable increase in trading activity, rising significantly shortly after the announcement.

DJT |-11.4% | -333.3M
Digital World Acquisition Corp
Digital World Acquisition Corp (DJT) has experienced a significant decline of 10.0% in pre-market trading. This downturn coincides with Trump Media's stock reaching a record low following a debate featuring Kamala Harris, which has introduced increased volatility in the market. Social media sentiment has turned negative, with users expressing expectations of further declines in DJT's performance. Comments from users reflect a sense of urgency and concern, with one stating, "She’s winning," and another noting that DJT was "getting hit pretty heavy." This heightened emotional response underscores the uncertainty surrounding DJT's valuation amid the current political landscape.

ALB | +14.7% | +1.6B
Albemarle Corp | Specialty Chemicals
Shares of Albemarle Corp, a key player in the lithium market, surged notably following reports that Contemporary Amperex Technology (CATL), a major Chinese battery manufacturer, may suspend its lepidolite mine operations. Analysts at UBS estimated that this suspension could lead to a reduction in China's lithium carbonate equivalent production by approximately 5,000-6,000 metric tons per month. This development has heightened expectations for a potential easing of the current supply glut in the lithium sector. CATL has also acknowledged plans to adjust its lithium carbonate production based on prevailing market conditions. The news has spurred significant premarket trading activity in U.S. lithium shares, reflecting optimism regarding supply-demand dynamics in the lithium market.

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